The Mainland company in the Emirates
General presentation
Establishing a Mainland company in Dubai is an ideal solution for entrepreneurs wishing to access the local market and government opportunities directly. This type of structure offers great flexibility and allows businesses to develop commercial activities without geographical restrictions in the United Arab Emirates.
Advantages and disadvantages
The advantages of a Mainland company in Dubai
- Local market access: Unlike Free Zone companies in Dubai, a Mainland company in Dubai can operate directly in the Emirati market without restrictions.
- Importer code: This option facilitates the import and export of goods to and from the United Arab Emirates.
- Simplified bank account opening: Mainland companies in Dubai benefit from simplified processes for opening a bank account in Dubai.
- Wide choice of locations: You can establish your company in various strategic locations across the Emirates.
- Economic substance: Mainland companies in Dubai meet the economic substance requirements for international activities.
Drawbacks to consider
- High total cost: The initial fees and operating costs of a Mainland company in Dubai are often higher than those of Free Zone structures.
- Administrative procedures: The registration process may be more complex due to local regulations.
- Specific approvals: Certain activities require approval from local authorities, adding steps to the registration process.
- Taxation: Since 2023, Mainland companies in Dubai and the Emirates have been subject to a 9% corporate income tax.
Opportunities and challenges
The opportunities of a Mainland company in Dubai
- Removal of the requirement for an Emirati partner: Many activities no longer require a partnership with a local national, offering foreign investors complete independence.
- Double taxation treaties: Dubai Mainland companies can benefit from tax agreements concluded between the UAE and numerous countries.
- Foreign Direct Investment (FDI) Law: This legislation promotes foreign investment in several strategic sectors.
Potential challenges
- Emirati partner required for certain activities: Although the rules are more flexible, some businesses still require a partnership with a local resident.
- Mandatory local service agent: Service activities require an Emirati "Local Service Agent", although this requirement is expected to disappear soon.
Establishing a Mainland company in Dubai is an essential solution for expanding your business in the UAE. At Merritt Middle East, we support you at every stage, from registration to administrative management, to ensure the success of your project.
Contact us today to start your Mainland business in Dubai!
Key features
Register
Dubai Economic Department (DED).
Permitted activities
Trading, Consultancy, Services, etc.
Minimum capital
AED 300,000 (the company's capital does not need to be paid in).
Manager
Minimum one. Must be a natural person. It is possible to establish a Board of Directors.
Associate(s)
Any individual (private person - minimum age 21) or legal entity (company).
Requirement to have an Emirati shareholder
It is no longer required to have an Emirati partner! A foreigner can now therefore own 100% of the capital of a Mainland company.
Registration obligations and deadline
Keep accounting records
Required.
Report on the audit of the annual financial statements
Required. It is not necessary to provide a copy of the audit report to the Registry.
Time to register
Approx. 10 days.
Understand the different types of Mainland companies
A consulting or merchandise sales activity has several implications for your Mainland company in Dubai:
Advice / Services
- For professional, service, and consulting activities, a foreigner may now own 100% of the shares.
- It is necessary to appoint a “local service agent” who must be Emirati. Their role is solely to represent the company before the Registry. We of course provide this service, and their remuneration is a fixed fee (AED 3,000 per year).
- The partners’ liability is unlimited! This point is very important, and we urge you to exercise the utmost caution in this regard, as local litigation may have significant consequences (confiscation of the passport until a dispute is resolved, etc.). It is possible to avoid this issue by registering a Branch in the Mainland of a limited liability company (contact us for more information).
Sale of goods / Import-export
- Most trading activities no longer require an Emirati partner. Please note: some activities still require a sponsor. We invite you to contact us to confirm this point.
- It is not required to appoint a “local service agent”.
- The partners’ liability is limited to the amount of their contribution to the company’s share capital.
Please note! Upon express request to the Registry Director, it is possible to request an “exemption” so that your consulting/services company can be an LLC (and therefore have limited liability) rather than a sole establishment / Civil Company.